Contract award notice
Results of the procurement procedure
Section I: Contracting
entity
I.1) Name and addresses
The Secretary of State for Justice
102 Petty France
London
SW1H 9AJ
UK
Contact person: Rachel Scott
Telephone: +44 2033343555
E-mail: rachel.scott@justice.gov.uk
NUTS: UK
Internet address(es)
Main address: https://www.justice.gov.uk/
I.4) Type of the contracting authority
Ministry or any other national or federal authority, including their regional or local subdivisions
I.5) Main activity
General public services
Section II: Object
II.1) Scope of the procurement
II.1.1) Title
Hosting Services
Reference number: con_17673
II.1.2) Main CPV code
72000000
II.1.3) Type of contract
Services
II.1.4) Short description
Provision of centralised hosting for business applications, in existing data centres, prior to such business applications being retired, replaced, or migrated to alternative hosting.
II.1.6) Information about lots
This contract is divided into lots:
No
II.1.7) Total value of the procurement
Value excluding VAT:
27 700 000.00
GBP
II.2) Description
II.2.2) Additional CPV code(s)
72100000
72200000
72300000
72400000
72500000
72600000
72700000
72800000
72900000
II.2.3) Place of performance
NUTS code:
UK
II.2.4) Description of the procurement
Provision of centralised hosting for business applications used by HMCTS and MoJ, from existing data centres, until such business applications are replaced, retired, or migrated to alternative hosting.
II.2.5) Award criteria
Price
II.2.11) Information about options
Options:
No
II.2.13) Information about European Union funds
The procurement is related to a project and/or programme financed by European Union funds:
No
Section IV: Procedure
IV.1) Description
IV.1.1) Type of procedure
Award of a contract without prior publication of a call for competition
Justification for selected award procedure:
The works, supplies or services can be provided only by a particular economic operator for the following reason: absence of competition for technical reasons
Explanation
The authority relies on the ground set out in Regulation 32(2)(b)(ii) and (iii) (Use of negotiated procedure without prior publication) of the Public Contracts Regulations 2015. For technical reasons, and for the protection of exclusive rights, including intellectual property rights, the services can be provided only by a particular economic operator. This is the incumbent supplier (CGI IT UK Ltd) who has been providing the services that form the subject matter of this contract under a contract with the authority for 5 years 11 months which came to an end on 18 April 2020. As part of a wider programme of business change, a number of applications hosted under the exiting contract are to be replaced/retired. The authority has a strategy to transition the hosting of the remaining applications to a more modern hosting platform with alternative supplier(s) and work has already started to migrate several applications to cloud hosting. There is a short-term requirement for the current ‘legacy’ hosting service to continue to be provided for a period beyond 18 April 2020, to enable the hosted applications to be retired, replaced, or transitioned to alternative hosting provision.
The term of the contract is for a period of 25 months to May 2022.
From a technical perspective, it is not feasible to transition these services to a new supplier for a short term. To do so would require new, separate infrastructure to be implemented and, because of the age and fragility of the current physical infrastructure and IPR in the build, it would not be possible to lift and shift or replicate the current infrastructure. The design of a new hosting platform and transition of the applications to it would require working knowledge of the applications as well as their complex interfaces and integration requirements and the new platform would have to be integrated with other suppliers’ solutions. The transition of applications to such a replacement infrastructure would thus present an high risk to service continuity as well as involving significant cost.
Therefore, it is the authority's view that it is likely that the cost of appointing a different supplier would not only be prohibitive but also that no other supplier would choose to bid for such a short-term appointment where the services are expected to reduce over the term.
The absence of competition has not arisen as a result of an artificial narrowing down of the parameters of the procurement.
IV.1.8) Information about Government Procurement Agreement (GPA)
The procurement is covered by the Government Procurement Agreement:
No
Section V: Award of contract
Contract No: 17673
Title: Hosting Services
A contract/lot is awarded:
Yes
V.2 Award of contract
V.2.1) Date of conclusion of the contract
17/04/2020
V.2.2) Information about tenders
Number of tenders received: 1
The contract has been awarded to a group of economic operators:
No
V.2.3) Name and address of the contractor
CGI IT UK Ltd
00947968
20 Fenchurch Street, 14th Floor
London
EC3M 3BY
UK
NUTS: UK
The contractor is an SME:
No
V.2.4) Information on value of the contract/lot (excluding VAT)
Total value of the contract/lot:
: 27 700 000.00
GBP
V.2.5) Information about subcontracting
Section VI: Complementary information
VI.4) Procedures for review
VI.4.1) Review body
High Court
Royal Courts of Justice, Strand
London
WC2A 2LL
UK
VI.4.2) Body responsible for mediation procedures
High Court
Royal Courts of Justice, Strand
London
WC2A 2LL
UK
VI.4.4) Service from which information about the review procedure may be obtained
High Court
Royal Courts of Justice, Strand
London
WC2A 2LL
UK
VI.5) Date of dispatch of this notice
06/05/2020